Just days after posting new record streaming subscriber numbers, the Foxtel Group has unveiled a major transformation plan.
The group will move key executives to head four new divisions to drive growth yet keep a lid on costs. The executives leading those groups are Hilary Perchard, Julian Ogrin, Amanda Laing and Les Wigan.
The changes were revealed to staff across the group by Foxtel Group chief executive Patrick Delany who noted their recent successful implementation of streaming strategy saw Foxtel Group transform itself into one of Australia’s most successful media companies.
“We are a proven disrupter and have cemented our place in more than half of Australian homes,” said Delany in a memo to staff.
Foxtel Group streaming growth
News Corp chief executive Robert Thomson detailed at an investor briefing last week how strong the streaming numbers were:
Total streaming subscribers, including Kayo Sports, Binge and Foxtel Now reached 3.039 million (2.963 million paid), up 11% year-on-year.
• Streaming subscribers represented approximately 66% of the Foxtel Group’s total subscribers (61% in Q3 FY22).
• Kayo Sports reached 1.332 million subscribers (1.309 million paid), up 10%
• Binge reached 1.529 million subscribers (1.484 million paid), up 17%
• Foxtel Now reached 178,000 subscribers (171,000 paid), down 17%
Thomson said: “Streaming now accounts for two-thirds of the total Foxtel subscription base and that revenue growth is more than offsetting the decline in broadcast – fears that our world-class streaming products would be a catalyst for cannibalisation have been unfounded.”
Foxtel divisions: Subscription TV, Infrastructure and Strategy Division
Foxtel’s chief customer, marketing and revenue officer Hilary Perchard has been tasked with running the Foxtel retail, wholesale and commercial business that will become the infrastructure nerve centre of the business. Delany noted this division will also house group strategy and research driving the agenda of change and future growth.
Hilary Perchard
Streaming Sports and Advertising Division
Perhaps the biggest change in the company-wide shake-up will see Julian Ogrin move from running Kayo Sports and Binge to focus on Kayo Sports and Foxtel Media. The job here will be to spearhead growth in subscription and digital advertising.
Under the guidance of Ogrin and Foxtel Media chief executive Mark Frain, this new division will lead the development of digital advertising capabilities to monetise new audience reach.
Delany noted: “Importantly this effort will be for all our ad-enabled platforms including Kayo Sports, Binge, Foxtel and Magneto. Foxtel Media remains an important brand we take to market, led by Mark Frain.”
Julian Ogrin
Entertainment Division
Previously part of the group that included Kayo Sports, entertainment streaming brand Binge has been spun out into its own division with Foxtel chief commercial and content officer Amanda Laing now running all of the entertainment strategy, acquisitions and commissioning for Binge and Foxtel. Laing will manage all of Foxtel’s third-party content partnerships through channels, outputs, production houses and studios.
Amanda Laing
Streaming Aggregation Division
One of the new Foxtel products is Project Magneto which will be run by chief technology, operations, and product innovation officer Les Wigan. Detailed information about exactly what this division will do is being kept under wraps for now. The staff memo shed little light on what the source of revenues will be. Perhaps some sort of aggregation business offering a one stop shop for consumers building their home entertainment packages? All Delany shared with staff yesterday was “[Magneto] will deliver true liberation in sports and entertainment for Australian consumers”.
Les Wigan
Fox Sports
The TV business that delivers the biggest audiences for Foxtel and Kayo, Fox Sports, will continue under the leadership of executive director Steve Crawley. He delivers the channels and live sport coverage that is the centrepiece of the Kayo streaming monster. Delany said: “Our platforms to monetise our sports rights are uniquely matched by our leadership in production of live sports and entertainment at Australia’s largest sports production company – Fox Sports.”
Steve Crawley
Sports Commercial and Acquisitions
The Foxtel Group has recognised the work done by backroom sports rights negotiator Rebecca McCloy. She will report directly to Delany after being a key player in securing renewals of AFL, Formula 1, Cricket Australia and No Limit Boxing.
Amanda Laing with Rebecca McCloy
Foxtel staff numbers
Summing up the changes, Delany told staff: “Our new operating model will change the way you and your teams are organised.
“Over the past five years, we have shown that we can lean into new ways of working and that we can transform our business in a way that reflects our values, supports the growth and enablement of our people, and delivers better business outcomes.
“Let’s change the game once again. Together we will take the Foxtel Group into its next era of growth and success.”
While there was no detail of any redundancies associated with the group structure, the TV business has been impacted by parent company News Corp’s plan to reduce headcount by over 1200 this calendar year. The changes could see some staff depart as the business continues to be, as described by one executive, “continually transforming.”
Foxtel, like any business, regularly asks how can it be more efficient.